H-2230              _______________________________________________


                                    SECOND SUBSTITUTE HOUSE BILL NO. 1476



State of Washington                               51st Legislature                              1989 Regular Session


By House Committee on Appropriations (originally sponsored by Representatives Basich, Doty, Spanel, Cantwell, Vekich, Kremen, Hargrove, Schoon, Sayan, Baugher, Inslee, Jesernig, Rasmussen, Rayburn, Walk, Jones, Rector, Raiter, Locke, Moyer, Youngsman, Walker, Winsley, Bowman, Brough, D. Sommers, Silver, Tate, Ferguson, Wineberry, P. King, Pruitt, Ebersole, Sprenkle, Morris and Todd)



Read first time 3/6/89.



AN ACT Relating to the development of marketplace programs; and adding new sections to chapter 43.31 RCW.




          NEW SECTION.  Sec. 1.     The legislature finds and declares that substantial benefits in increased employment and business activity can be obtained by assisting businesses in identifying opportunities to purchase the goods and services they need from in-state suppliers rather than from out-of-state suppliers.  The replacement of out-of-state imports with services and manufactured goods produced in-state can be an important source of economic growth in a local community especially in rural areas.  Businesses in the state are often unaware that goods and services they purchase from out-of-state suppliers are available from in-state firms with substantial advantages in responsiveness, service, and price.  Increasing the economic partnerships between businesses in Washington state can build bridges between urban and rural communities and can result in the identification of additional opportunities for successful economic development initiatives.  Providing additional information to businesses regarding in-state sources of goods and services can be a particularly valuable component of revitalization strategies in economically distressed areas.  The legislature finds and declares that it is the policy of the state to strengthen the economies of local communities by increasing the economic partnerships between in-state businesses and creating programs to assist businesses in identifying in-state sources of goods and services.


          NEW SECTION.  Sec. 2.     Unless the context clearly requires otherwise, the definitions in this section apply throughout this act:

          (1) "Department" means the department of trade and economic development.

          (2) "Center" means the business assistance center established under RCW 43.31.083.

          (3) "Director" means the director of trade and economic development.

          (4) "Local nonprofit organization" means a local nonprofit organization organized to provide economic development or community development services, including but not limited to associate development organizations, economic development councils, and community development corporations.


          NEW SECTION.  Sec. 3.     There is established a Washington marketplace program within the business assistance center established under RCW 43.31.083.  The program shall assist Washington businesses to competitively meet their needs for goods and services within Washington by providing information relating to the replacement of imports or the fulfillment of new requirements with in-state products.  The program shall place special emphasis on strengthening rural economies in economically distressed areas of the state as defined in RCW 82.60.020(3).  The Washington marketplace program shall consult with the community revitalization team established pursuant to chapter 43.165 RCW.


          NEW SECTION.  Sec. 4.     (1) The department shall contract with local nonprofit organizations in at least four economically distressed areas of the state, as defined in RCW 82.60.020(3), to implement the Washington marketplace program in these areas.  The department, in order to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas, may enter into joint contracts with multiple nonprofit organizations.  Each joint contract must include at least one nonprofit organization that is located in a distressed area.  No joint contract may include more than one nonprofit organization located in an urban location.  In contracting with local nonprofit organizations, the department shall:

          (a) Award contracts based on a competitive bidding process, pursuant to chapter 43.19 RCW;

          (b) Give preference to nonprofit organizations representing a broad spectrum of community support; and

          (c) Ensure that each location contain sufficient business activity to permit effective program operation and contribute at least twenty percent local funding.

          (2) The contracts with local nonprofit organizations shall be for the performance of the following services for the Washington marketplace program:

          (a) Contacting Washington businesses to identify goods and services they are currently buying or are planning in the future to buy out-of-state and determine which of these goods and services could be purchased on competitive terms within the state;

          (b) Identifying locally sold goods and services which are currently provided by out-of-state businesses;

          (c) Determining, in consultation with local business, goods and services for which the business is willing to make contract agreements;

          (d) Advertising market opportunities described in (c) of this subsection; and

          (e) Receiving bid responses from potential suppliers and sending them to that business for final selection.

          (3) Contracts may include provisions for charging service fees of businesses that profit as a result of participation in the program.

          (4) The center shall also perform the following activities in order to promote the goals of the program:

          (a) Prepare promotional materials or conduct seminars to inform communities and organizations about the Washington marketplace program;

          (b) Provide technical assistance to communities and organizations interested in developing an import replacement program;

          (c) Develop standardized procedures for operating the local component of the Washington marketplace program;

          (d) Provide continuing management and technical assistance to local contractors; and

          (e) Report by December 31 of each year to the senate economic development and labor committee and to the house of representatives trade and economic development committee describing the activities of the Washington marketplace program.


          NEW SECTION.  Sec. 5.     Sections 1 through 4 of this act are each added to chapter 43.31 RCW.


          NEW SECTION.  Sec. 6.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.